Energy Policy Tracker

Islamic Development Bank (IsDB)

In 2020-2021, in response to the COVID 19 pandemic, Islamic Development Bank (IsDB) have committed at least USD 2.02 billion to supporting energy projects through new loans, grants, and guarantees according to their own reporting and other publicly available information. This public finance includes:

• At least USD 1.77 billion for fossil fuels without conditions
• At least USD 20.20 million for unconditional clean energy
• At least USD 209.60 million for conditional clean energy
• At least USD 26.00 million for other energy

By energy type, Islamic Development Bank (IsDB) committed at least USD 1.52 billion to oil and gas (at least USD 1.52 billion to unconditional oil and gas).

Finally, Islamic Development Bank (IsDB) committed at least USD 243.90 million to multiple fossil fuels (at least USD 243.90 million to unconditional multiple fossil fuels).

A considerably larger amount of new public finance from Islamic Development Bank (IsDB) that is not at the project level may also benefit different elements of the energy sector, however this finance is not reported on in a way that can be disaggregated and therefore is not included in the database. This finance is largely made up of (a) investments in financial intermediaries (like commercial banks, private equity firms, or other development funds), (b) budgetary or policy support loans that are cross-cutting across many areas of government, (c) technical assistance, and (d) funding for associated infrastructure like ports or roads that will be primarily used for the transport of energy-related goods.

Many of these public finance commitments are part of programs that existed prior to the COVID-19 pandemic, however they only represent projects that were approved post-pandemic. Recovery spending via Islamic Development Bank (IsDB) is cross cutting and it is quite subjective to disaggregate what projects are or are not recovery related.